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  • Coronavirus Alert

    Paycheck Protection Program: SBA Will Provide Relief from Potential Reduction in Loan Forgiveness for Attempts to Rehire Employees

    May 5, 2020
    The SBA recently issued updates to its Frequently Asked Questions interpreting provisions of the Paycheck Protection Program. FAQ #40 addresses application of the CARES Act provisions that reduce the amount of loan forgiven based upon the number of employees retained by a borrower.
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  • Coronavirus Alert

    Quick Guidance to Lenders: Update to SBA Frequently Asked Questions Issued April 29, 2020

    May 1, 2020
    The Small Business Administration (SBA) recently released an update to its Frequently Asked Questions.
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  • Coronavirus Alert

    Quick Guidance: Review of New SBA Interim Rule & Update to SBA Frequently Asked Questions Issued April 14, 2020

    April 16, 2020
    The Small Business Administration (SBA) recently released a supplement to the Interim Final Rule issued on April 3, 2020, along with an update to its Frequently Asked Questions. The supplemental rule provides guidance for self-employed individuals as well as addressing certain eligibility requirements. This alert contains a review of several pertinent points in the rule and updated FAQs.
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  • Coronavirus Alert

    Quick Guidance: Review of SBA Frequently Asked Questions Issued April 6, 2020

    April 7, 2020
    This guidance reviews several of the more significant provisions of the PPP Frequently Asked Questions issued Monday, April 6, 2020. Lender’s responsibility with respect to borrower’s payroll calculation (Question 1) The FAQ confirms that lenders are not required to recalculate every aspect of borrower’s payroll cost calculation. Lenders will be protected provided that they “perform a good faith review, in reasonable time, of borrower’s calculations.” The level of investigation by the lender should be determined based upon the quality of documentation submitted by the borrower. We believe that reports, forms and other information filed with a governmental agency (IRS, State) would carry the most weight in this regard.
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  • Coronavirus Alert

    SBA Interim Rule - FAQ For Lenders

    April 5, 2020
    The Small Business Administration issued an interim final rule that provides additional implementation guidelines and requirements for its Paycheck Protection Program. This article provides answers to frequently asked questions from lenders.
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  • Coronavirus Alert

    CARES Provides Forgivable SBA Loans Under Paycheck Protection Program

    March 27, 2020
    In an effort to provide support to the nation's ailing economy during the COVID-19 outbreak, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act, among other things, amends the Small Business Act (SBA) for the period from February 15, 2020 to June 30, 2020, also referred to as the "covered period," to expand the SBA loan program, making $349 billion in funds available to businesses and nonprofit organizations that would not otherwise qualify to cover expenses that would otherwise not be permitted.
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  • Coronavirus Alert

    COVID-19 Product Shortages – Legal Pitfalls in Choosing Among Customers

    March 25, 2020
    Supply chains across the globe are being disrupted by the coronavirus (COVID-19) pandemic as manufacturers of “non-essential” goods curtail or completely suspend production based on worker shortages or government orders. The impacts of those realities will be felt for months or years to come by downstream businesses who assumed a certain supply of goods or raw materials when accepting orders from their customers. Given the lead times associated with manufacturing products, supply chains will not be refilled overnight. That means that many sellers may not have sufficient supplies to fill all customer orders in the short term or once the pandemic abates and consumer demand returns.  In those situations, sellers will need to carefully consider their legal obligations before picking and choosing among their customers in a limited supply context.
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